Under the contract, Sempra will construct the 530km (329 miles) long pipeline to connect the gas supplies from the US state of Arizona to Guaymas in Mexican state of Sonora.
The new pipeline to be constructed in two phases is expected to have a capacity of 760 million cubic feet per day and may cost anywhere between $630m to $730m, according to Bloomberg.
Mexico is undertaking the pipeline project work to expand its 9,656km (6,000 miles) gas network and increase the imports as the gas prices are at its lowest since 2001.
Due to the surge in the import, the some of the pipelines are working about 95% of capacity, resulting in bottlenecks and shortages.
CFE selected Sempra after it bid $0.13 per million British thermal units; and beat TransCanada (TRP), Korea Gas, and Mitsui & Co.
